I know all about Sab/Ox and the rule changes around accounting after the dot com meltdown....none of which obviously applies to Resverlogix as a development stage company with no revenue.  

There are two sides to the joke....making things look super so that the big boys can dump high, or make them look unattractive with a big chance of the stock having the bottom fall out in order for the players to load up cheap.

How would a development stage biotech, with zero revenue...if it had something really good, but if it wanted to present the worst possible picture to get shareholders to sell cheap.....what could it do without blatantly breaking any laws?

One would be to be ultra quiet I think....and to only put out news when absolutely required.  Another might be to set safe harbour protected expectations about future events...and then fail to meet them, that is sure to tick some people off I would wager.